What Inflation Adjustments to Expect from the IRS in 2024

(StraightNews.org) – The Internal Revenue Service (IRS) has announced tax inflation adjustment changes for 2024. The announcement included adjustments for over 60 tax provisions, including the reintroduction of the Hazardous Substance Superfund financing rate for crude oil imports which returns under the terms of the Inflation Reduction Act enacted by the Biden White House last year.

“For calendar years beginning in 2024, the Hazardous Substance Superfund financing rate is adjusted for inflation. For calendar year 2024 crude oil or petroleum products entered after December 31, 2016, will have a tax rate of $0.26 cents a barrel,” IRS guidance states.

For general income tax returns, the standard deduction level for a married couple filing jointly will rise by $1,500 to $29,200. For single individuals or married couples filing separate returns, the deduction will rise to $14,600 – an increase of $750.

The top tax rate will remain 37% for individuals earning higher than $609,350 (or $731,200 for married couples). This drops to 35% for income over $243,725 ($487,450 for married couples), 32% for incomes over $191,950 ($383,900 for married couples), 24% for incomes over $100,525 ($201,050 for married couples), 22% for incomes over $47,150 ($94,300 for married couples), and 12% for incomes over $11,600 ($23,200 for married couple). The married couple rates only to apply to those filing jointly.

The IRS is encouraging people to prepare their tax returns early and has issued repeated reminders about small and significant changes Americans can expect in 2024. The service has introduced some online additions for the coming year which it believes will make filing easier, such as enhancements to online accounts where taxpayers can view, approve, and electronically sign “power of attorney and tax information authorizations from their tax professional.”

It also advises those who purchased an electric vehicle (EV) in 2022 or 2023 to review any changes under the Inflation Reduction Act and find out if they qualify for EV tax credits, or credits for making energy-efficient changes to their home.

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